IFC requires that this document be made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because limited environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project included a physical visit to the Playa Dorada, Punta Caña and Santo Domingo hotels, and an evaluation of technical and environmental and social information submitted by the project sponsor. The following potential environment, health and safety and social impacts of the projects were analyzed. - Environmental affairs management at the Allegro Playa Dorada hotel in Puerto Plata; - Environmental affairs management at the Occidental Allegro Punta Caña hotel; - Environmental affairs management at the Santo Domingo Embajador hotel; - Quality, occupational health and safety, environmental and risk management; and - Life and fire safety management.

The sponsor has presented plans to address these impacts to ensure that Occidental will, upon implementation of the specific agreed measures at the corporate and local levels comply with environmental and social requirements, Dominican Republic laws and regulations and the World Bank/IFC environment and social policies and environmental, health and safety guidelines. Information about how these potential impacts will be addressed by Occidental is summarized in the paragraphs that follow. Further information is provided in the attached Corrective Action Plan (CAP). - Environmental affairs management at the Allegro Playa Dorada hotel in Puerto Plata. This is a 500-room resort with approximately 300 employees; it has been recently modernized and has all the characteristics of a high-end resort. Environmental issues are all handled well. Housekeeping is good in all service areas. Electricity is provided by the local utility for the tourist zone in which it is located, and there is a backup diesel generator. Wastewater is treated in a dedicated secondary treatment plant for the tourist zone, which is adequate in size for future expansion. In the offing, treated secondary effluent will be filtered and disinfected then used for landscaping in the zone. Solid waste is disposed in the municipal landfill. Freezers and chillers use non-ozone depleting refrigerants. Food sanitation, environmental affairs and occupational health and safety as well as pest control are overseen by an independent contractor that provides this service for all of the hotels in the tourist zone. - Environmental affairs management at the Occidental Allegro Punta Caña hotel in Punta Caña. This is a 540-room resort with approximately 460 staff. A major renovation has just been completed. Electricity is provided by the local utility, and there is a backup diesel generator. Wastewater is treated in an on-site secondary treatment plant, and the treated waste is passed through sand filters and injected into a saline aquifer, which is approved by the local authorities. Water supply for potable and landscaping services is ground water from a dedicated resource area several kilometers away. Reverse osmosis is used to demineralize ground water and all water supplied for potable purposes is chlorinated prior to storage and distribution. Solid waste and wastewater treatment plant sludge is disposed in a dedicated landfill in the development area. The hotel has two small diesel-fired boilers for steam production, which are properly maintained and produce minimal emissions. Pest control is provided by an independent contractor. Chemical storage is properly controlled. The resort has a clinic with 24-hour medical service, and there is a private hospital staffed with expatriate medical personnel nearby in the development zone. External assistance in case of need is provided by the fire service at the Punta Caña airport. - Environmental affairs management at the Santo Domingo Embajador hotel. This is a 286-room conference center and hotel with approximately 300 staff; it has been recently rehabilitated. Water is supplied by the municipality and treated extensively in the hotel to ensure that potable water is supplied for all hotel uses. Wastewater is discharged to the municipal sewer. All environmental activities, utilities and food sanitation are monitored by a specialized subcontractor; as needed remedial measures are reported to hotel management for action. Refrigeration systems utilize both Freon™ 134A and R-22. Freon™ R-22 will be phased out in accordance with the attached CAP. Small gas fired boilers provide steam and hot water for laundry and food service operations; hot water for guest rooms emanates from heat exchangers installed in the chillers. Electric power for operations is supplied by the municipal gird; two diesel-driven 1000 KVA standby generators supply the hotel during municipal power outages. Diesel fuel storage for the generators is not equipped with secondary containment and will be installed in accordance with the attached CAP. The hotel has a clinic that provides medical and dental service for guests and employees. - Quality, occupational health and safety and risk management. As part of a previous investment project with IFC, Occidental Hotels initiated, at the corporate level, a program entitled Global Hotel Risk Management System (GHRMS). This program contemplates development of integrated management system for the hotel group. The project has evolved into an integrated Total Quality Management Program for all twenty-two properties and all hotel departments and activities. The objective of this program is to install a management system to identify and appropriately manage risks, proceduralize key business processes and provide metrics to add value to Occidental management, clients, employees, suppliers, and shareholders. Management system procedures will define myriad activities as well as desired performance at all levels; ensure adequacy of utility and support systems; and define mandatory activities and associated responsibilities needed to monitor compliance with local laws and regulations, the mitigation measures defined in environmental planning documents developed for each facility, and with IFC/WBG safeguard policies and guidelines. With integration of the system, employee training and development will focus on general and property-specific procedures developed for the system to define management-approved allocation of responsibilities, reporting requirements and associated management tasks. Occidental Dominican Republic Hotels will be integrated into the management system and will achieve internationally recognized compliance of the management system in accordance with the attached Corrective Action Plan (CAP). - Life and fire safety management. Also integrated into a previous IFC investment, Occidental Hotels has developed a global program (Total Quality Management) to comply with the requirements of IFC’s Life and Fire Safety and Occupational Health and Safety guidelines among others. An integral part of the program consists of conducting detailed audits of all twenty-two Occidental properties to evaluate shortcomings in compliance with Spanish and local life and fire safety regulations. The audit report for each facility describes the shortcomings and includes a list of acute and longer-term remedial actions (corrective measures) required to being each facility into compliance. Audits for all Occidental properties have been completed. The corporate corrective action plan for all properties and the schedule for completion of construction activities to bring the Dominican Republic hotels into compliance will be carried out in accordance with the attached Corrective Action Plan (CAP).

The attached Corrective Action Plan (CAP) provides further details of environmental and social issues and the ameliorative measures and mandatory completion dates required to rectify them.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual monitoring reports (AMRs) prepared for the project covering: - the status of implementation of all ameliorative measures contained in the Corrective Action Plan (CAP) and - ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programs. Periodic site supervision visits will also be conducted.